Scotland: Smith Commission

Lord Richard Excerpts

Thursday 27th November 2014 Lords Chamber

[Lord Wallace of Tankerness]

My noble friend makes a point that a number of people and commentators have been making. When we had our debate, my noble friend Lord Lexden said that in the days of Joseph Chamberlain and Gladstone that very issue was being debated in the Irish context. We have gone beyond the stage of saying that the best answer to the so-called West Lothian question was not to ask it. Those days are past, and the Prime Minister said this morning that there will be a publication of proposals on what is now called “English votes for English laws”. I resist using the acronym EVEL, because that might sometimes be a misrepresentation, but a publication of proposals will be out before Christmas and we will wait to see it. It is a proper question and a fair one, but some of the answers are not entirely straightforward.

[Lord Richard (Lab)]

My Lords, I should like to ask the Minister a question in a slightly different Celtic context. He will recognise that detailed proposals are being produced for Scotland. He will also recognise that, in that event, the situation in Wales cannot be allowed to continue as it is at present. I draw attention to two points. First, do the Government have any proposals that they wish to make to the people and the Government of Wales in respect of tax powers being devolved to Wales on a similar basis to those being devolved to Scotland? Secondly, how on earth can the Government justify saying that the Barnett formula should continue to apply? I listened to the Secretary of State making his Statement in the Commons this morning and he said at one stage, “Well, nobody has been able to think of anything better”. Would the Minister care to pass on to the Secretary of State the report of your Lordships’ committee on the Barnett formula? He will find that we went into it in great detail and produced an alternative that, in my submission at any rate, was clear, cogent and practicable, and it would have been effective. For the Government now to accept that the Barnett formula should continue seems to me absolutely preposterous.

[Lord Wallace of Tankerness]

My Lords, I know that the noble Lord is well aware that the Wales Bill, which had a Third Reading in your Lordships’ House on Monday of this week, makes provision for the devolution of tax powers to Wales. They are subject to a referendum, but of course Scotland had a referendum on the principle of tax powers back in 1997. My right honourable friend the Secretary of State for Wales has also indicated that he will produce a reserved powers framework for Wales by St David’s Day. I think someone said that it was just as well that St George’s Day is during “purdah” or we would have yet another commitment for England.

On the question of the Barnett formula, the leaders of the three UK political parties made it clear that the formula will continue; but with regard to Wales—and I am aware of the importance of this, having been the spokesman for the Wales Office in your Lordships’ House for two years—the United Kingdom and Welsh Governments have established a joint process to review relative levels of funding for Wales and England in advance of each spending review. That process is not affected by the commitments contained in the Smith commission proposals.